01—Abstract
Summary
Summary of the 8-K filed June 12, 2026. Cited figures are marked; the original filing is the authoritative source.
On June 11, 2026, Delta Air Lines, Inc. entered into a new credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto.
The Credit Facility refinances and fully replaces Delta's existing credit agreement dated November 6, 2023. Proceeds of borrowings will be used in part to refinance the Existing Credit Facility and for general corporate purposes. The facility was undrawn when Delta entered into it.
The Credit Facility includes a $2.650 billiona revolving facility, made up of a $1.325 billion three-year tranche and a $1.325 billion five-year tranche, plus a separate standby letter of credit facility that remains uncommitted. Up to $250 million of each of the three-year and five-year tranches may be used for letters of credit. An accordion feature allows aggregate commitments to be increased up to $3.65 billion at Delta's request, subject to certain conditions.
Borrowings under the revolving tranches bear interest at adjusted term SOFR, or another index rate, plus a specified margin. The agreement contains affirmative, negative and financial covenants, including restrictions on liens on or disposition of a designated pool of assets, and requires Delta to maintain a Minimum Fixed Charge Coverage Ratio of 1.25:1 and a Minimum Asset Coverage Ratio of 1.25:1. Customary events of default apply, including cross-default to other material indebtedness, and obligations may be accelerated upon an event of default.
02—Key points
Key Highlights
- New $2.650 billion revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent, dated June 11, 2026
- Facility replaces the Existing Credit Facility dated November 6, 2023 in its entirety
- Revolver split into a $1.325 billion three-year tranche and a $1.325 billion five-year tranche, plus an uncommitted standby letter of credit facility
- Accordion feature allows commitments to be increased up to $3.65 billion, subject to conditions
- Borrowings bear interest at adjusted term SOFR, or another index rate, plus a specified margin; facility was undrawn at signing
- Financial covenants require a Minimum Fixed Charge Coverage Ratio and a Minimum Asset Coverage Ratio, each at least 1.25:1
- Covenants restrict liens on and disposition of a designated pool of assets; cross-default provisions apply
03—Questions
Frequently Asked Questions
Why did Delta enter into this new credit agreement?
The filing states that the Credit Facility refinances and replaces Delta's Existing Credit Facility dated November 6, 2023 in its entirety. Proceeds of future borrowings will be used in part to refinance the Existing Credit Facility and for general corporate purposes.
Is Delta currently borrowing under the new facility?
No. The filing states that the Credit Facility was undrawn at the time Delta entered into it.
How large can the facility become?
The revolving facility totals $2.650 billion across two $1.325 billion tranches. The accordion feature allows aggregate commitments to be increased up to $3.65 billion upon Delta's request and subject to certain conditions.
What financial covenants must Delta maintain?
Delta must maintain a Minimum Fixed Charge Coverage Ratio of 1.25:1, defined as EBITDAR-based earnings relative to gross cash interest plus cash aircraft rental expense over the trailing four fiscal quarters, and a Minimum Asset Coverage Ratio of 1.25:1, defined as the value of the designated pool of unencumbered assets relative to outstanding obligations under the facility (excluding cash collateralized letter of credit obligations).
What events could allow lenders to accelerate the debt?
The filing states the facility contains customary events of default, including a cross-default to other material indebtedness. Upon an event of default, outstanding obligations may be accelerated and become immediately due and payable.
04—Continue